> ## Documentation Index
> Fetch the complete documentation index at: https://docs.conduit.financial/llms.txt
> Use this file to discover all available pages before exploring further.

# Fiat-to-Fiat Conversions

> Convert between fiat currencies and pay international recipients.

## **Fiat-to-Fiat Conversions**

Convert one fiat currency into another and send funds to international recipients using Conduit’s conversion transactions.

**Type:** `conversion`

<Note>
  Conversions handle cross-currency fiat payments (e.g., USD → EUR). Same-currency payments (e.g., USD → USD) use transfers.
</Note>

### **When to use**

* Cross-border payments — send to international suppliers and partners
* Currency conversion — exchange one fiat currency for another
* Examples: EUR → BRL, USD → MXN, GBP → COP

### **How fiat conversions work**

1. Create transaction with type: `conversion`
2. Receive deposit instructions — banking details to send funds to Conduit
3. Send funds — wire money to Conduit in the source currency
4. Currency exchange — Conduit converts at locked rate
5. Send to recipient — converted funds are sent to destination account
6. Completed — recipient receives funds in target currency

### **Common fields**

**Key characteristics:**

1. Deposit instructions — banking details to send funds to Conduit (only for external bank account conversions)
2. Source types:
   * **Account ID** (`acct_...`) — For USD balance conversions (fiat-to-fiat only). Funds are already in the system, so no external pay-in is required. Processing is faster and skips compliance screening. **Note:** If both source and destination are account IDs, the system automatically routes to `BALANCE_CONVERSION` transaction type (crypto-to-crypto).
   * **Bank Account ID** (`bank_...`) — For external bank account conversions (fiat-to-fiat). Requires external pay-in from the bank account before conversion can proceed.
3. Destination — Must be a bank account ID (`bank_...`) for CONVERSION transactions. **Note:** If both source and destination are account IDs, the system automatically routes to `BALANCE_CONVERSION` transaction type (crypto-to-crypto).
4. Quote required — locks in exchange rate and fees
5. Compliance requirements — may require supporting documentation (for external bank account conversions)
6. Settlement time — typically 1–3 business days for external conversions (varies by corridor), faster for USD balance conversions

### **Key terms**

| Term                 | Definition                                            |
| -------------------- | ----------------------------------------------------- |
| Conversion           | Exchanging different currencies (type: `conversion`)  |
| Deposit instructions | Banking details provided for sending funds to Conduit |
| Source currency      | The fiat currency you’re sending from                 |
| Target currency      | The fiat currency recipient receives                  |
| Quote                | Locked-in exchange rate/fees with expiration time     |
| Bank account ID      | Bank account identifier (e.g., `bank_...`)            |
| Rail                 | Payment method (SWIFT, SEPA, PIX, etc.)               |

### **Understanding true sender and true recipient**

#### **Why this matters**

Compliance requires visibility into the actual parties involved in each transaction, not just intermediaries. Misidentification can result in:

* Payment delays or rejections
* Compliance review failures
* Risk of limited access or account offboarding

#### **True sender definition**

The true sender is the business that provides the funds for a transaction.

If you’re acting on behalf of a customer:

* The customer is the true sender — not your business, even if funds move through your accounts
* Example: Acme Corp pays a vendor via your platform → Acme Corp is the true sender

If the funds come from your own business account:

* Your company is the true sender
* Example: You pay a vendor directly → Your company is the true sender

#### **True recipient definition**

The true recipient is the person or business that ultimately receives and benefits from the funds.

If you’re paying on behalf of a customer:

* The final beneficiary is the true recipient — not your business
* Example: Acme Corp pays a contractor via your platform → The contractor is the true recipient

If the payment is for your own operations:

* The vendor or account receiving funds is the true recipient
* Example: You pay your supplier → The supplier is the true recipient

<Note>
  These may not always appear as explicit API fields but remain critical for compliance.
</Note>

## **What's next?**

Now that you know what a fiat conversion is and how it works, learn how to create one by following [Creating a Fiat Conversion Transaction](/guides/transaction/first-fiat-conversion).

For full request details, see the [API Reference](/api-reference/transactions/create-a-transaction).

## Support

Reach out to our [support team](https://support.conduitpay.com/) to get help and share your feedback.